Signs of a shift in momentum on the GROUND!
“There's a shifting of market share on the ground,” “FedEx is gaining, UPS is losing."
And it's on the ground where the difference in business models is most evident. UPS is unionized, while FedEx works on an owner/operator model: Some 16,000 people have a direct stake in the company’s success.
The companies’ financials stack up like this: UPS has annual revenues of $30 billion, while FedEx has $22 billion. But UPS has a market capitalization, or total stock market value, that's four times that of its rival: $82 billion compared to FedEx’s $22 billion. UPS trades at twice the price-to-book ratio that FedEx does. Those numbers have convinced analysts like Broughton that UPS is over-priced.
"I give the advantage to FedEx. “It's more entrepreneurial, more willing to take risk. And the model it's employing should produce better operating margins for it and steal the premium yield from its competitor, UPS."
Way to go FEDEX!
Lets buy some one else! HUM! Maybe DHL!
Any input....on this information!
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